Answer: Because we always achieve the highest price and identify a buyer which will sustain the legacy of the seller and his/her employees Answer: Because we have an enviable record of success (we’ve sold every company that has stayed in the game to the finish). We accomplish this by doing the following: Critically reviewing and suggesting changes to the financials Suggesting improvements to the company operations. Enabling the Seller to focus on running the company. Prepar

A potential buyer and his spouse are visiting your company for the first time. What will their impression be? The building and its signage are visually satisfactory. There is visitor parking and the area is free of debris. The entry door is clean (not grimy). They receive a friendly greeting (rather than a perfunctory hello). The carpets are clean and appear to be recently vacuumed. The bathrooms are fresh and welcoming (not like latrines). The shop and/or warehouse floor is

When a buyer considers the purchase of a company, the most important aspect is the financial health of the company as shown on the P&L and Balance Sheet as well as the tax returns. While the profitability is important, an astute buyer will want to analyze the elements of the cost of goods sold, the gross profit margins and detailed overhead expenses in order to gain additional clarity. Historical financials (past 3-5 years) are important because they show variability, growth,

1. Run the company as if it were sale Create the culture of growth that buyers seek. Create written procedures for the most common processes. Know and track your Key Performance Indicators (KPI’s). Track financial performance; share appropriately with subordinates. If needed, retain management consulting assistance. 2. Reduce Dependencies Customer concentrations Dependency on the owner or a key employee Supplier dependencies Product dependencies 3. Train and motivate subordi

A 'Knock on the Door' can lead to the sale of a company...or not! An unanticipated expression of interest can lead to the sale of a company.  This interest may not lead anywhere however if the company is not ready for sale.  Always operate a company as if it is for sale. Know what drives value.Engage an M&A professional to determine market value.Upgrade financials .Track Key Performance Indicators (KPI’s).Create a high-performance management team. Minimize dependencies (cust

We lost a prospective client when another M&A advisor indicated that they could sell the prospect’s company for an inflated value that was about 75% more than our opinion of value. While we were disappointed to not get the engagement, RCAS remains committed to never suggesting an inflated selling price in order to gain a client(After considerable time on the market, the sale did not go through.) The value of a company is what a willing buyer and a willing seller both agree i

Summary: We follow a proven process, are more involved, and have more experience, than our competition. We are proud of our record of selling 100% of the companies that have engaged us through closing. Pre-Sale Due Diligence We complete the initial due diligence and financial analysis ( pro bono ) to determine company valuation ranges and salability. We collaborate with the seller to identify opportunities to increase value. This process is intensive and is rarely completed

Numbers, numbers, numbers.  A good friend/boss of mine once told me, “You have to know your numbers.” If you own or run a business and don’t know your numbers, then you are destined for disappointment- whether in your operating performance or when you make that ‘someday’ decision to sell your business. Here is a not so unusual example. Recently, we did our financial sleuthing into the statements of a prospective client of ours. Many questions came up and he had no answers. It

It is typical for M&A advisors to pay a fee to someone who refers a client to the firm. We depend on referrals and adopted this practice years ago. Our firm pays a smaller fee for an introduction (without continuing support) and a larger fee to a Finder that supports the prospect during the transaction. At the direction of the Finder, the fee can be paid directly to the Finder, deducted from the commission to be paid by the Seller, or paid to a non-profit in the name of th